2. 2
Leaders in the QualityLeaders in the Quality
RevolutionRevolution
W. Edwards DemingW. Edwards Deming
Joseph M. JuranJoseph M. Juran
Philip B. CrosbyPhilip B. Crosby
Armand V. FeigenbaumArmand V. Feigenbaum
Kaoru IshikawaKaoru Ishikawa
Genichi TaguchiGenichi Taguchi
4. 4
Deming Chain ReactionDeming Chain Reaction
Improve quality
Costs decrease
Productivity improves
Increase market share with better
quality and lower prices
Stay in business
Provide jobs and more jobs
5. Key IdeaKey Idea
The Deming philosophy focuses on
continual improvements in product and
service quality by reducing uncertainty
and variability in design, manufacturing,
and service processes, driven by the
leadership of top management.
6. 6
Deming’s System ofDeming’s System of
Profound KnowledgeProfound Knowledge
Appreciation for a systemAppreciation for a system
Understanding variationUnderstanding variation
Theory of knowledgeTheory of knowledge
PsychologyPsychology
7. 7
SystemsSystems
Most organizational processes areMost organizational processes are
cross-functionalcross-functional
Parts of a system must workParts of a system must work
togethertogether
Every system must have a purposeEvery system must have a purpose
Management must optimize theManagement must optimize the
system as a wholesystem as a whole
8. Key IdeaKey Idea
The aim of any system should be for all
stakeholders—stockholders,
employees, customers, community, and
the environment—to benefit over the
long term.
9. 9
VariationVariation
Many sources of uncontrollableMany sources of uncontrollable
variation exist in any processvariation exist in any process
Excessive variation results in productExcessive variation results in product
failures, unhappy customers, andfailures, unhappy customers, and
unnecessary costsunnecessary costs
Statistical methods can be used toStatistical methods can be used to
identify and quantify variation to helpidentify and quantify variation to help
understand it and lead tounderstand it and lead to
improvementsimprovements
10. 10
Theory of KnowledgeTheory of Knowledge
Knowledge is not possible withoutKnowledge is not possible without
theorytheory
Experience alone does not establishExperience alone does not establish
a theory, it onlya theory, it only describesdescribes
Theory shows cause-and-effectTheory shows cause-and-effect
relationships that can be used forrelationships that can be used for
predictionprediction
11. 11
PsychologyPsychology
People are motivated intrinsically andPeople are motivated intrinsically and
extrinsically; intrinsic motivation is theextrinsically; intrinsic motivation is the
most powerfulmost powerful
Fear is demotivatingFear is demotivating
Managers should develop pride andManagers should develop pride and
joy in workjoy in work
12. 12
Deming’s 14 PointsDeming’s 14 Points (Abridged)(Abridged)
(1 of 2)(1 of 2)
1. Create and publish a company mission
statement and commit to it.
2. Learn the new philosophy.
3. Understand the purpose of inspection.
4. End business practices driven by price alone.
5. Constantly improve system of production
and service.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear and create trust.
13. 13
Deming’s 14 PointsDeming’s 14 Points (2 of 2)(2 of 2)
9. Optimize team and individual efforts.
10. Eliminate exhortations for work force.
11. Eliminate numerical quotas and M.B.O.
Focus on improvement.
12. Remove barriers that rob people of pride
of workmanship.
13. Encourage education and self-improvement.
14. Take action to accomplish the transformation.
www.deming.org
15. Key IdeaKey Idea
Juran proposed a simple definition of
quality: “fitness for use.” This definition
of quality suggests that it should be
viewed from both external and internal
perspectives; that is, quality is related to
“(1) product performance that results in
customer satisfaction; (2) freedom from
product deficiencies, which avoids
customer dissatisfaction.”
16. Phillip B. Crosby
Quality is free . . .
“Quality is free. It’s not a gift, but it is
free. What costs money are the unquality
things -- all the actions that involve not
doing jobs right the first time.”
17. 17
Philip B. CrosbyPhilip B. Crosby
Absolutes of Quality Management:Absolutes of Quality Management:
Quality means conformance to requirementsQuality means conformance to requirements
Problems are functional in natureProblems are functional in nature
There is no optimum level of defectsThere is no optimum level of defects
Cost of quality is the only usefulCost of quality is the only useful
measurementmeasurement
Zero defects is the only performanceZero defects is the only performance
standardstandard
www.philipcrosby.com
18. A.V. FeigenbaumA.V. Feigenbaum
Three Steps to QualityThree Steps to Quality
– Quality Leadership, with a strongQuality Leadership, with a strong
focus on planningfocus on planning
– Modern Quality Technology,Modern Quality Technology,
involving the entire work forceinvolving the entire work force
– Organizational Commitment,Organizational Commitment,
supported by continuous trainingsupported by continuous training
and motivationand motivation
19. Kaoru IshikawaKaoru Ishikawa
Instrumental in developing JapaneseInstrumental in developing Japanese
quality strategyquality strategy
Influenced participative approachesInfluenced participative approaches
involving all workersinvolving all workers
Advocated the use of simple visualAdvocated the use of simple visual
tools and statistical techniquestools and statistical techniques
20. Genichi TaguchiGenichi Taguchi
Pioneered a new perspective on quality basedPioneered a new perspective on quality based
on the economic value of being on target andon the economic value of being on target and
reducing variation and dispelling thereducing variation and dispelling the
traditional view of conformance totraditional view of conformance to
specifications:specifications:
No Loss LossLoss
Tolerance
0.500 0.5200.480
21. 21
Malcolm Baldrige NationalMalcolm Baldrige National
Quality AwardQuality Award
Help improve quality inHelp improve quality in
U.S. companiesU.S. companies
Recognize achievementsRecognize achievements
of excellent firms andof excellent firms and
provide examples to othersprovide examples to others
Establish criteria forEstablish criteria for
evaluating quality effortsevaluating quality efforts
Provide guidance for otherProvide guidance for other
American companiesAmerican companies
Malcolm Baldrige,
former U.S. Secretary
of Commerce
22. 22
Criteria for PerformanceCriteria for Performance
ExcellenceExcellence
LeadershipLeadership
Strategic PlanningStrategic Planning
Customer and Market FocusCustomer and Market Focus
Measurement, Analysis, andMeasurement, Analysis, and
Knowledge ManagementKnowledge Management
Human Resource FocusHuman Resource Focus
Process ManagementProcess Management
Business ResultsBusiness Results
Baldrige
Award trophy
23. The Baldrige Framework –The Baldrige Framework –
A Systems PerspectiveA Systems Perspective
4
Measurement, Analysis, and Knowledge Management
5
Human
Resource
Focus
3
Customer &
Market
Focus
7
Business
Results
7
Business
Results
2
Strategic
Planning
1
Leadership
6
Process
Management
Organizational Profile:
Environment, Relationships, and
Challenges
24. Key IdeaKey Idea
The Baldrige criteria define both an
integrated infrastructure and a set of
fundamental practices for a high-
performance management system.
25. Criteria EvolutionCriteria Evolution (1 of 2)(1 of 2)
From quality assurance and strategicFrom quality assurance and strategic
quality planning to a focus on processquality planning to a focus on process
management and overall strategic planningmanagement and overall strategic planning
From a focus on current customers to aFrom a focus on current customers to a
focus on current and future customers andfocus on current and future customers and
marketsmarkets
From human resource utilization to humanFrom human resource utilization to human
resource development and managementresource development and management
From supplier quality to supplierFrom supplier quality to supplier
partnershipspartnerships
26. Criteria EvolutionCriteria Evolution (2 of 2)(2 of 2)
From individual quality improvement activitiesFrom individual quality improvement activities
to cycles of evaluation and improvement in allto cycles of evaluation and improvement in all
key areaskey areas
From data analysis of quality efforts to anFrom data analysis of quality efforts to an
aggregate, integrated organizational levelaggregate, integrated organizational level
review of key company datareview of key company data
From results that focus on limited financialFrom results that focus on limited financial
performance to a focus on a composite ofperformance to a focus on a composite of
business results, including customerbusiness results, including customer
satisfaction and financial, product, service,satisfaction and financial, product, service,
and strategic performanceand strategic performance
27. Key IdeaKey Idea
Approaches that organizations use to
address the Baldrige criteria
requirements need not be formal or
complex, and can easily be implemented
by small businesses.
28. Receive Applications
Judges Select for
Consensus Review?
Judges Select for
Site Visit Review?
Stage 1
Independent Review
Stage 2
Consensus Review
Stage 3
Site Visit Review
Stage 4
Judges Recommend Award
Recipients to
NIST Director/DOC
Feedback report
to applicant
Feedback report
to applicant
Feedback report
to applicant
No
No
Baldrige Award EvaluationBaldrige Award Evaluation
ProcessProcess
29. Self AssessmentSelf Assessment
A primary goal of the Baldrige program
is to encourage many organizations to
improve on their own by equipping
them with a standard template for
measuring their performance and their
progress toward performance
excellence.
Boeing Airlift & Tanker
Programs – 1998 winner
30. 30
Deming PrizeDeming Prize
Instituted 1951 by Union of JapaneseInstituted 1951 by Union of Japanese
Scientists and Engineers (JUSE)Scientists and Engineers (JUSE)
Several categories including prizes forSeveral categories including prizes for
individuals, factories, small companies, andindividuals, factories, small companies, and
Deming application prizeDeming application prize
American company winners include FloridaAmerican company winners include Florida
Power & Light and AT&T Power SystemsPower & Light and AT&T Power Systems
DivisionDivision
31. Other Quality AwardsOther Quality Awards
European Quality AwardEuropean Quality Award
Canadian Awards for BusinessCanadian Awards for Business
ExcellenceExcellence
Australian Business Excellence AwardAustralian Business Excellence Award
33. 33
ISO 9000:2000ISO 9000:2000
Quality system standards adopted byQuality system standards adopted by
International Organization forInternational Organization for
Standardization in 1987; revised in 1994Standardization in 1987; revised in 1994
and 2000and 2000
Technical specifications and criteria to beTechnical specifications and criteria to be
used as rules, guidelines, or definitions ofused as rules, guidelines, or definitions of
characteristics to ensure that materials,characteristics to ensure that materials,
products, processes, and services are fitproducts, processes, and services are fit
for their purpose.for their purpose.
34. Key IdeaKey Idea
ISO 9000 defines quality system
standards, based on the premise that
certain generic characteristics of
management practices can be
standardized, and that a well-designed,
well-implemented, and carefully managed
quality system provides confidence that
the out-puts will meet customer
expectations and requirements.
35. 35
Objectives of ISOObjectives of ISO
StandardsStandards (1 of 2)(1 of 2)
Achieve, maintain, and continuouslyAchieve, maintain, and continuously
improve product qualityimprove product quality
Improve quality of operations to continuallyImprove quality of operations to continually
meet customers’ and stakeholders’ needsmeet customers’ and stakeholders’ needs
Provide confidence to internalProvide confidence to internal
management and other employees thatmanagement and other employees that
quality requirements are being fulfilledquality requirements are being fulfilled
36. 36
Objectives of ISOObjectives of ISO
StandardsStandards (2 of 2)(2 of 2)
Provide confidence to customers andProvide confidence to customers and
other stakeholders that qualityother stakeholders that quality
requirements are being achievedrequirements are being achieved
Provide confidence that quality systemProvide confidence that quality system
requirements are fulfilledrequirements are fulfilled
37. 37
Structure of ISO 9000Structure of ISO 9000
StandardsStandards
21 elements organized into four major21 elements organized into four major
sections:sections:
– Management ResponsibilityManagement Responsibility
– Resource ManagementResource Management
– Product RealizationProduct Realization
– Measurement, Analysis, andMeasurement, Analysis, and
IimprovementIimprovement
38. ISO 9000:2000 QualityISO 9000:2000 Quality
Management PrinciplesManagement Principles
1.1. Customer FocusCustomer Focus
2.2. LeadershipLeadership
3.3. Involvement of PeopleInvolvement of People
4.4. Process ApproachProcess Approach
5.5. System Approach to ManagementSystem Approach to Management
6.6. Continual ImprovementContinual Improvement
7.7. Factual Approach to Decision MakingFactual Approach to Decision Making
8.8. Mutually Beneficial Supplier RelationshipsMutually Beneficial Supplier Relationships
39. Key IdeaKey Idea
ISO 9000 provides a set of good basic
practices for initiating a quality system,
and is an excellent starting point for
companies with no formal quality
assurance program.
40. Six SigmaSix Sigma
Based on a statistical measure thatBased on a statistical measure that
equates to 3.4 or fewer errors orequates to 3.4 or fewer errors or
defects per million opportunitiesdefects per million opportunities
Pioneered by Motorola in the mid-Pioneered by Motorola in the mid-
1980s and popularized by the success1980s and popularized by the success
of General Electricof General Electric
41. Key IdeaKey Idea
Six Sigma can be described as a
business improvement approach that
seeks to find and eliminate causes of
defects and errors in manufacturing and
service processes by focusing on outputs
that are critical to customers and a clear
financial return for the organization.
42. Key Concepts of Six SigmaKey Concepts of Six Sigma
(1 of 2)(1 of 2)
Think in terms of key business processes,
customer requirements, and overall strategic
objectives.
Focus on corporate sponsors responsible for
championing projects, support team activities,
help to overcome resistance to change, and
obtaining resources.
Emphasize such quantifiable measures as
defects per million opportunities (dpmo) that
can be applied to all parts of an organization
43. Key Concepts of Six SigmaKey Concepts of Six Sigma
(2 of 2)(2 of 2)
Ensure that appropriate metrics are identified early
and focus on business results, thereby providing
incentives and accountability.
Provide extensive training followed by project team
deployment
Create highly qualified process improvement
experts (“green belts,” “black belts,” and “master
black belts”) who can apply improvement tools and
lead teams.
Set stretch objectives for improvement.
44. Key IdeaKey Idea
Although different, Baldrige and Six
Sigma are highly compatible and can
each have a place in the management
system of a successful organization.
Editor's Notes
The framework is the 30,000 foot view of the Criteria. [Note: Education and Health Care Criteria have slightly different nomenclature.]
The building blocks, or Categories, are essential -- performance in the Baldrige categories is the cost of entry -- but excellence in the linkages will be the mark of competitive leadership. The arrows point to excellence.
The umbrella over strategy and action plans:
It is the set of customer and market focused company-level requirements.
These are derived from short- and long-term planning.
They are the things that must be done well for the strategy to succeed.
The action plans “bring the strategy to life.”
They guide overall resource decisions.
They drive the alignment of measures for all work units to ensure customer satisfaction and market success.
The system:
The leadership triad -- leadership, strategic planning, customer & market focus -- emphasizes the importance of a leadership focus on strategy and customers.
The results triad is HR focus, process management, and business results. Its focus is on the employees and key processes that accomplish the work of the organization that yields results.
ALL company actions point toward results.
The large arrow in the center connects the leadership and results triads -- a critical linkage for company success -- and shows the role leaders must play in driving results improvement.
Information and analysis are critical to a fact-based system; they are the foundation for the performance management system.
The four-stage evaluation process is illustrated in this chart.
After each stage of review, the Panel of Judges meets to decide which applicants should go forward to the next stage -- consensus or site visit.
The Judges’ guidelines encourage giving “benefit of the doubt” to make certain that all potential Award recipients proceed to each succeeding stage of review.
When it is determined that an applicant will not proceed to the next stage of the process, the feedback report is prepared and sent within 45 days.
All information remains strictly confidential throughout the process.
There are strict conflict-of-interest rules that are followed by all Examiners, Judges, and National Quality Program staff.
The Baldrige National Quality Program is more than an Award program. A major purpose of the Criteria is to provide a framework organizations can use for self-assessment.
To encourage self-assessment, the Program makes available the materials to accomplish Baldrige assessments in-house. Materials include the Criteria, scoring guidelines, a structure for identifying organizational strengths and opportunities for improvement, and a case study packet that demonstrates the complete process.
In addition to the state and local network, an international network has now evolved as well.
Over 40 programs exist across the world, and many are Baldrige based.
There is even a Baldrige-based Award in Japan, in addition to the Deming prize.
Baldrige has truly become a global benchmark and the Criteria have become accepted as a world-wide standard for performance excellence.